Oil Holds Near 3-Week Low as US Sanctions Interrupt Easing Tensions.

• Brent futures saw a second consecutive day of lows since March 27, having settled at $87.11 a barrel, while WTI crude settled at $82.73. Mixed U.S. economic data, coupled with sanctions on Venezuela and Iran and easing tensions in the Middle East, influenced investor sentiment.
• Increased interest in energy trading was evident with open interest in Brent futures reaching its highest since February 2021. Additionally, U.S. diesel futures dropped to their lowest level since January, impacting refining profit margins, measured by the diesel crack spread, to their lowest since April 2023.
• Venezuela lost a key U.S. license for oil exports, impacting its crude and fuel sales, while U.S. sanctions on Iran targeted its unarmed aerial vehicle production. However, the sanctions did not extend to Iran's oil industry.
• While Geopolitical tensions and supply dynamics continue to influence oil market sentiments, investors are gradually unwinding the geopolitical risk premium in recent sessions.

(Source: Reuters)